DMP - They are charging me and I dont need them anymore

JimmyJammy_2

Hi Guys,

This is my first time posting and i was wondering if someone could give me some advice. Throughout Uni i built up a load of debt touching on 20K, I've now got it down to 15K, in just over a year. :j

I'm with a debt management company called DFH in manchester however when I started with these people I was in a right mess, I didnt earn enough money to pay the miminum balances on my cards so i agreed to have a DMP with them.

I pay DFH £326 per month but they take £50 for themselves with is painful, I didnt know about CCCS at the time. I've called payplan and they have said they cant offer me anything because I have more than enough money surplus every month.

Anyway to cut a long story short, I'm on a lot more money now and can afford to pay more back every month and i definetly dont want DFH to have any of it. I'm concerned that if I stop paying DFH and pay my creditors directly then the interest will be put back on my cards which will be more that £50 per month all in all.

Has anyone had this situation before or has any advice they can give me.

Thanks

Newgirl_2

Hi. Well done on reducing your debts - keep going!

I don't have any experience of this but would agree that if you come out of your agreement, the credit card companies will probably put interest back on your balances. I think for now, I would either keep going until your debts are smaller and until you can start throwing chunks of money to clear single debts.

What I would do is put any spare money aside and save it for if and when you are offered settlement deals as that will clear chunks of debt and leave more to be distributed around your creditors.

Hindsight is a wonderful thing - personally, I can't fault the CCCS and they are free. I don't know the rules on changing DMP managment companies but there is a chance your creditors would react to the change if you swapped and you would end up have to get another proposal agreed.

See if other MSErs agree... someone might have experience of this.

Newgirl

JimmyJammy_2

Thanks Newgirl,

I am really happy that I have got my debts down, my girlfriend is an accountant and has helped me over the last few months to get my money in order.

Im thinking the same thing as you with regards to staying with DFH unless anyone out there has any great ideas.

Any ideas are welcome.

Cheers

Gemmzie

If Payplan wouldn't take you before as you had too much surplus income and now you have even more, I think you should pay back all you can.

JimmyJammy_2

Sorry let me clarify, payplan said they couldnt help me when i called then once i was on my new salary.

Currently after all bills including rents and payment to DFH i have £500 left now and im not sure what the best thing to do with it is.

I have online accounts with my creditors so I guess i could just make one off payments every so often